Bay City approves $200 land contract for 501 Michigan Ave conditioned on home construction

Bay City commissioners approved a land contract to sell a city-owned vacant lot at 501 Michigan Ave to developer Mike Spencer for $200, with strict development conditions requiring a completed single-family home and a certificate of occupancy by May 1, 2027.

Commissioner Cubitt explained the contract includes forfeiture provisions if the developer fails to build; staff confirmed the purchaser has previously bought and developed other lots in the city and is already constructing homes. "This is a land contract where it's specifically conditioned on developing the property and having a certificate of occupancy on or before 05/01/2027," Commissioner Cubitt said.

Economic development staff (Sarah) noted the city's policy and the online process for interested parties; the minimum bid rule and process are published on the department's website. The commission approved the sale by roll call (9 yes).